subprime lender

Definition

A lender who gives mortgages to borrowers with poor credit who do not meet the criteria for a conforming or conventional mortgage. These lenders charge higher fees and interest rates in exchange for taking on the additional risk that is associated with subprime loans.

Use subprime lender in a sentence

Most of the problems associated with the mortgage crash of 2007 was due to all the subprime lenders in the market.

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You should try and find a subprime lender if you have bad credit but really need to get a hold of the property now.

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Even if you have bad credit, it's still possible to get a mortgage loan through a subprime lender, although you will have to pay higher fees and interest rates.

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